The Consulting Comeback: AI and Energy Demand Fuel Industry Growth
US companies are increasingly relying on consultants, not just for traditional advice, but for navigating the complexities of artificial intelligence implementation and the surging energy demands of data centers. This shift is driving the fastest growth in the US consulting market since the immediate post-pandemic boom, according to recent forecasts.
From Pandemic Boom to Strategic Re-Evaluation
Following a period of slower demand in the years after the initial pandemic surge, consulting firms faced layoffs, hiring freezes, and cost-cutting measures. Executives initially attributed this slowdown to macroeconomic uncertainty and geopolitical instability. There were also concerns that clients might attempt to handle more work internally using AI. But, the current outlook suggests a change in perspective.
AI: From Experimentation to Implementation
Companies are moving beyond simply experimenting with AI and are now actively seeking expert guidance to achieve tangible productivity gains. Source Global reports that 90% of clients plan to utilize consultants to help implement AI solutions. This indicates a recognition that successful AI integration requires specialized knowledge and support.
Pro Tip: Don’t underestimate the importance of a phased approach to AI implementation. Start with pilot projects to demonstrate value and build internal expertise before scaling across the organization.
The Energy Sector’s Rising Demand
The AI boom is also indirectly benefiting the consulting sector through increased demand from the energy industry. AI data centers are significant energy consumers, creating a need for innovative solutions to ensure affordable and reliable power. Source Global predicts the energy sector will be the fastest-growing client segment for consultants in 2026, with an expected growth rate of 11%.
A Shift Towards Measurable Results
Consulting firms are anticipating a year of “selective acceleration,” focusing on projects that deliver clear and measurable financial returns. Clients are demanding a demonstrable return on their AI investments, driving demand for related services like cloud modernization, cybersecurity, and workforce transformation. Some areas are expected to see double-digit growth.
The Rise of Practical Solutions and the Big Four
While strategy firms traditionally commanded high fees, the current climate favors firms that can deliver practical, actionable solutions. This trend benefits the “Big Four” accounting and consulting firms (Deloitte, EY, KPMG, and PwC) and technology-focused consultancies. Clients are prioritizing “getting things done” over high-level strategic advice.
Discretionary Spending and Market Performance
Despite the positive outlook, discretionary spending remains a concern. Accenture recently reported beating earnings estimates but refrained from raising its full-year guidance, citing a lack of improvement in discretionary project spending. Cognizant Technology Solutions also noted a similar trend, although financial services clients have shown steady growth in discretionary spending.
The Consulting Role in the Age of AI
Consultants are emphasizing their continued value proposition, even as companies leverage AI internally. The focus is shifting from simply providing solutions to empowering clients with the knowledge and skills to sustain long-term success. As KPMG’s Rob Fisher stated, clients want to be “taught to fish,” not just given the fish.
Frequently Asked Questions
- Is AI replacing consultants? No, AI is creating new opportunities for consultants to help clients implement and optimize AI solutions.
- Which consulting firms are best positioned for growth? Firms that can deliver practical, actionable solutions, particularly the Big Four and technology-focused consultancies, are expected to benefit most.
- What is driving demand for consulting services in the energy sector? The energy-intensive nature of AI data centers is driving demand for consulting expertise in energy management and sustainable solutions.
- Are consulting fees increasing? There is continued downward pressure on prices, meaning firms need to demonstrate value and efficiency to maintain profitability.
Explore further: Discover the latest insights on professional services and artificial intelligence on the Financial Times website.
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